FOR IMMEDIATE RELEASE: January 15, 1987 MANUFACTURER AND SELLER OF TREATED WOOD MAY NOT MISREPRESENT PRODUCT'S FIRE RETARDANT QUALITIES, UNDER FTC AGREEMENT The Federal Trade Commission has charged that Reliance Wood Preserving Inc. and two associated companies misrepresented the flame-retardant value of their "Flameguard" wood. In a consent agreement announced today, the companies agreed not to make mis representations in the future and to notify purchasers that some of the wood may not meet established safety standards. Most state and local building codes require use of fire- retardant treated wood in parts of certain buildings, such as the roofs of hospitals, nursing homes, and apartment complexes. The wood, which is made fire-retardant through pressure treatment with chemicals, must be certified as meeting industry standards by independent testing laboratories. According to the FTC's complaint, Reliance and the other companies claimed that "Flameguard" met applicable building code standards for fire retardant wood. In addition, they claimed "Flameguard" had the approval of certain industry and independent testing groups, including Timber Products Inspection. The FTC charged that such claims were untrue, because some of the wood failed to meet applicable standards for fire retardant wood and also was not approved by independent agencies. Reliance Wood Preserving Inc. manufactures "Flameguard" treated wood for McCoy Industries Inc., which sells the wood to consumers through its wholly owned subsidiary, Reliance Treated Woods. Under the consent agreement, Reliance Wood Preserving and its owner, Daniel Roy Dorman, are prohibited from making false claims about its treated wood. They must also notify purchasers of "Flameguard" manufactured before April 15, 1985, that some of the wood may not be fire retardant as represented. McCoy Industries and Reliance Treated Wood, under a separate agreement, are similarly prohibited from making false claims. They must also give Reliance Wood Preserving a list of customers who bought the wood before April 15, 1985, so the company can notify customers that the treated wood may not meet safety standards. The Commission voted 4-1 to accept the agreement for public comment, with Commissioner Andrew J. Strenio, Jr. dissenting. Commissioner Strenio issued a statement explaining that "because of the dangers to public safety from the misrepresentations alleged here, and the difficulty for consumers of detecting the existence and extent of any injury, I would reject the consents and insist upon monetary redress provisions." Reliance Wood Preserving is located in Federalsburg, Md. McCoy Industries and Reliance Treated Wood are located in Greensboro, N.C. The FTC's Atlanta Regional Office conducted the investigation. (More) The consent agreement is scheduled to appear in the Federal Register Jan. 16. It will be subject to public comment for 60 days, until March 17, after which the Commission will decide whether to make it final. A consent agreement is for settlement purposes only and does not constitute admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $10,000. Comments should be addressed to the Office of the Secretary, FTC, 6th St. and Pennsylvania Ave. N.W., Washington, D.C. 20580. Copies of the agreement, the complaint, an analysis of the agreement, and Commissioner Strenio's dissent are available from the FTC's Public Reference Branch, Room 130, same address; 202- 523-3598; TTY 202-523-3638. # # # MEDIA CONTACT: Linda I. Singer, Office of Public Affairs, 202- 326-2178 STAFF CONTACT: Harold E. Kirtz, Atlanta Regional Office, 404- 347-4836 (File No. 852 3106) (Reliance)